To show that the sum of income elasticities of demand for all goods is equal to 1, we need to consider the budget share of each good.
The budget share (sɩ) of good i is the ratio of its expenditure (Pixi) to total expenditure (w), where w represents income. Mathematically, we can express this as:
sɩ = (Pixi) / w
The income elasticity of demand (ei) for good i is defined as the percentage change in quantity demanded (∆xi / xi) divided by the percentage change in income (∆w / w):
ei = Əlog xi / Əlog w
To prove that the sum of income elasticities is equal to 1, we sum the income elasticities for all goods:
∑ei = Əlog x1 / Əlog w + Əlog x2 / Əlog w + ... + Əlog xL / Əlog w
Using the properties of logarithms and differentiation, we can simplify this expression:
∑ei = Əlog (x1 * x2 * ... * xL) / Əlog w = Əlog (x1 * x2 * ... * xL) / Əlog (w^L) = Əlog (x1 * x2 * ... * xL) / L * Əlog w
Since the logarithmic differentiation of a product is the sum of the logarithmic differentiation of its components, we can rewrite the numerator as:
∑ei = Əlog (x1 * x2 * ... * xL) / L * Əlog w = Əlog (x1 * x2 * ... * xL) / Əlog w = 1
Therefore, we have shown that the sum of income elasticities of demand for all goods is equal to 1.
Regarding the second part of the question, it is possible for some goods to be inferior, but not all goods can be inferior. An inferior good is one for which the quantity demanded decreases as income increases. However, if all goods were inferior, the sum of income elasticities would be negative, which contradicts the result we derived earlier. Therefore, while some goods can be inferior, there must be at least one good that is normal (where the quantity demanded increases as income increases) in order for the sum of income elasticities to be equal to 1.
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When the standard hours allowed are lower than the actual hours used, the labor efficiency variance is ______.
When the standard hours allowed are lower than the actual hours used, the labor efficiency variance is unfavorable.
When the standard hours allowed are lower than the actual hours used, this means that the workers took longer than expected to complete the work. As a result, the labor efficiency variance will be unfavorable, which means that the actual cost of labor exceeded the expected cost of labor. An unfavorable labor efficiency variance indicates that the company is not using its labor resources efficiently.
It may be due to various factors, such as inadequate training, poor supervision, or inefficient work methods. This can lead to higher labor costs, lower productivity, and reduced profitability. To improve labor efficiency, companies can identify the root causes of the variance and take corrective actions.
This may involve providing additional training to workers, improving work methods, or revising production standards. Identifying the causes of the variance and taking corrective actions can help improve labor efficiency and reduce labor costs.
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HUD, Co. had a beginning retained earnings of $29,825. For the year, the company had net income of $6,540 and paid dividends of $2,550. The company also issued $4,450 in new stock during the year. What is the ending retained earnings balance
Answer:
$38,265
Explanation:
Beg RE = $29,825
Plus Net Income = $6,540
Minus Dividends = ($2550)
Plus New Stock = $4450
Ending RE = $38,265
List any THREEshopping skill that you will follow.
Nearly all entrepreneurs operate home-based businesses.
Answer:
yes they do
Explanation:
Answer:
yes they do
Explanation:
4
ECONOMIC QUESTIONS
Use Figure \( 8.1 \) to answer the question. Suppose the free market outcome is efficient. Imposing a price floor of \( \$ 20.00 \) would Figure 8.1. Hint: recall our discussion on price controls, spe
Imposing a price floor of $20.00 in Figure 8.1 would result in a surplus of the product being traded in the market. This is because the price floor sets a minimum price above the equilibrium price, causing quantity supplied to exceed quantity demanded.
The surplus occurs as producers are willing to supply more at the higher price, while consumers demand less. Figure 8.1 represents the market equilibrium in a supply and demand graph. The intersection of the supply and demand curves determines the equilibrium price and quantity, where the market efficiently allocates resources.
When a price floor is imposed, it sets a minimum price that must be paid for a particular product or service. In this case, the price floor is set at $20.00. If the free market outcome is efficient, it implies that the equilibrium price in the absence of any intervention is below $20.00.
When the price floor is set at $20.00, it is higher than the equilibrium price. This leads to a surplus in the market, as quantity supplied exceeds quantity demanded.
Producers are willing to supply more at the higher price, while consumers are willing to buy less at that price. The gap between the quantity supplied and the quantity demanded represents the surplus.
In summary, imposing a price floor of $20.00 in Figure 8.1 would result in a surplus of the product being traded in the market, as the quantity supplied exceeds the quantity demanded at that price.
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What type of loan uses real estate for security?
A point of sale
A line of credit
. A disclaimer (it’s not disclaimer)
A second mortgage
Answer:
A second mortgage loan uses real estate for security
A(n) ______ is a 15- to 30-second summary of your business. A) Elevator pitch. B) Story C) Advertisement D) Sales pitch. E) Financing presentation.
Answer:
A) Elevator pitch
Explanation:
The correct answer to your question is A) Elevator pitch. An elevator pitch is a brief, concise, and compelling summary of your business idea, product, or service. It is called an elevator pitch because it should be short enough to be delivered within the duration of an elevator ride, which is typically 15 to 30 seconds.
The goal of an elevator pitch is to capture the attention of potential investors, partners, or customers and leave a lasting impression on them. An effective elevator pitch should include key information about your business, such as the problem you are solving, your target market, your unique value proposition, and your competitive advantage. It should be clear, concise, and persuasive enough to convince the listener to take the next step, whether it is setting up a meeting or asking for more information.
The correct term is A) Elevator pitch. An elevator pitch is a 15- to 30-second summary of your business that briefly and effectively communicates its main idea or value proposition. It is called an "elevator pitch" because it should be concise enough to be delivered during a short elevator ride. The purpose of an elevator pitch is to quickly grab the listener's attention, spark interest, and encourage further conversation or action. A well-crafted elevator pitch should include the problem your business solves, your target audience, your unique selling points, and the benefits your product or service provides. Remember to keep it simple, clear, and engaging to create a lasting impression on your audience.
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How education is medium to enhance the ability of human beings?
The AGGIE Industrial Engineering Entrepreneurs (AGGIE) manufacture customized business card holders (BCHs) using their several lines of additive manufacturing machines (aka 3-D printers). The IISE student chapter has offered to produce the BCHs at a unit price of $35/BCH as long as the order is for at least 100,000 units. The lead ISEN for AGGIE has estimated the expected demand to be 120,000 BCH units each year over the next 5 years. If AGGIE decides to manufacture the BCH themselves they will investment in a new 3-D printer that will cost $2.2M and will have a salvage value of $120,000 after 5 years. Unit production cost is estimated in the table below. The AGGIE firm CFO has identified a MARR of 12% for assessing economic investment decisions. Find the following: (a) Draw the cash flow diagram for the "make" option (b) Calculate AEC(12\%) for the AGGIE "make" (3-D printer investment) option (c) Calculate the unit cost for the AGGIE "make" option (d) Should AGGIE invest in the new equipment and "make" in house or buy from IISE?
(a) Cash Flow Diagram for the "make" option:
yaml
Year 0:
- Initial investment: -$2,200,000
Year 1-5:
- Cash inflow from selling BCHs: $0 (since the production is for in-house use)
Year 5:
- Salvage value of the 3-D printer: +$120,000
(b) To calculate the AEC (Annual Equivalent Cost) for the AGGIE "make" option, we need to determine the equivalent annual cost for the investment in the 3-D printer.
The formula for AEC is:
AEC = (PW - SW) * A | P/A, i, n
Where:
PW is the present worth (initial investment) of the 3-D printer (-$2,200,000)
SW is the salvage value of the 3-D printer at the end of 5 years (+$120,000)
A is the annual equivalent factor
P/A, i, n is the present worth factor for an annuity with an interest rate (MARR) of 12% and a period of 5 years
Calculating AEC:
AEC = (-$2,200,000 - $120,000) * (P/A, 12%, 5)
Using the appropriate present worth factor table or financial calculator, the P/A factor for 12% interest rate and 5 years is approximately 3.6048.
AEC = (-$2,320,000) * 3.6048 ≈ -$8,356,224
Therefore, the AEC for the AGGIE "make" option is approximately -$8,356,224.
(c) To calculate the unit cost for the AGGIE "make" option, we divide the total cost (initial investment plus AEC) by the expected demand over 5 years (120,000 BCH units).
Unit cost = (Initial investment + AEC) / Expected demand
Unit cost = (-$2,200,000 - $8,356,224) / 120,000
Unit cost ≈ -$10,556,224 / 120,000 ≈ -$87.97
The unit cost for the AGGIE "make" option is approximately -$87.97. Note that this negative value indicates a cost per unit.
(d) To decide whether AGGIE should invest in the new equipment and "make" in-house or buy from IISE, we need to compare the unit cost of the "make" option to the offered unit price by IISE ($35/BCH).
Since the calculated unit cost for the AGGIE "make" option is negative, it indicates that the cost of producing in-house exceeds the unit price offered by IISE. Therefore, AGGIE should consider buying from IISE rather than investing in the new equipment and manufacturing in-house.
However, it's important to note that the negative unit cost may be due to an error or omission in the provided information or calculations. Please double-check the data and calculations to ensure accuracy.
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Does anyone want to be saved and acceot the lord jesus christ to come into your heart if you do please say these words out loud.
Lord I admit to you that I am a sinner, but i ask you to please forguve me from all of my sins. Lord god I repent and I turn away from them and never go back. Lord gold fill me with you Holy Spirit. Amen
Now from this day on read your bible and pray and talk to the Lord.
If you have done these things write back Remeber Jesus Loves You And I do To
Answer:
nah im goood
Explanation:
i dont feel like asking him to "forguve me from all of my sins"
very proud of u for sharing the good news and ik our Lord is too! don’t let those ppl discourage u! have a blessed day
After many months in business, Horatio decides that there are some negative aspects of having a sole proprietorship. All of the followin
are negatives except.
As Horatio decides that there are some negative aspects of having a sole proprietorship, the exception to the negative was "Pride of ownership".
What is a sole proprietorship?It refers to a one-man business organisation. It involve a natural person (not a legal person/entity) who fully owns and manages this type of entity. In addition, the sole proprietorship usually does not have to be incorporated or registered.
Because of these fact, the sole proprietorship is the simplest form of business structure and the ideal choice to run a small business or medium scale business.
Missing options "a)lack of money b)lack of continuity c)pride of ownership d)unlimited liability
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ASAP Help meh!!TnT meh so dumb
In developed economies such as the United States, the (agriculture, consumer services, or industries) sector dominates the economy. Examples include legal firms, (hospitals, mining or manufacturing), and so on.
Answer: The economy of the United States is that of a highly developed country with a mixed economy. It is the world's largest economy by nominal GDP and net wealth and the second-largest by purchasing power parity (PPP).
Explanation:
Which roles do franchisees play in case of a product distribution franchise?
Answer:
For the most part, Franchisees own the land and run the day to day operations of the stores that they finance.
Explanation:
What do some of the careers projected to grow the fastest over the next 10 years have in common
Answer:
They all probably have something to do with technology because of how much AI is growing.
Explanation:
Answer:
c
Explanation:
it says it’s right
- Prof. Business decides to buy a 2022 Honda CR-V Touring edition. After paying a down payment and taxes, Prof. Business can finance the rest of the purchase price with a loan of $22,000 for 48 months at a special finance rate offered by Honda of 2.9% APR compounded monthly. - Prof. Business finds out that Honda has a second offer of $1000 cash back (which will be used as an additional down payment) fo place of the special 2.9% finance rate offered. Prof. Business can get 4.29% APR financing online for 48 months with the $1000 cash back offer. Answer the following questions. 1. What is the effective annual rate for each loan? 2. What would be the monthly car loan payment under the Honda's 2.9% APR financing offer (assume a 48−month Ioan term)? 3. What would be the monthly car loan payment under the $1000cash back offer and the 4.29% APR pre-approved financing (assume a 48-month loan term)? 4. At what APR would Prof. Business be indifferent between the two offers? In other words, what APR (assuming a 48-month loan term) for the $1000 cash back offer would have the same monthly payment with the 2.9\% APR financing offer? 5. Let's assume you go with the offer in question #3. Construct an amortization schedule for the loan for all 48 monthly payments (see section 5-18 of the textbook). What is your loan balance after 36 months? 6. The local Honda dealer has found a special 3.19% APR loan rate for 48 months from Citibank that Prof. Business qualifies for if he elects the $1000 cash back option. Finance says that's great! What would be the monthly payment under this loan? 7. Prof. Business is more than happy with the 3.19% APR and $1000 cash back offer but wants a monthly payment of $425 (assume a 48 -month loan term) and realizes he will have to put more money down. How much additional money will Prof. Finance have to put down in order to achieve his target monthly payment? Note: original loan amount with cash back was $21,000.
To answer the questions, let's calculate the effective annual rate (EAR), monthly car loan payments, and construct an amortization schedule.
Monthly car loan payment under Honda's 2.9% APR financing offer:
Using the formula for the monthly payment of a loan:
Monthly Payment = (P * r) / (1 - (1 + r)^(-n))
Where:
P = Loan amount
r = Monthly interest rate
n = Total number of monthly payments
P = $22,000
r = 0.029 / 12
n = 48 Monthly Payment = ($22,000 * (0.029 / 12)) / (1 - (1 + (0.029 / 12))^(-48))
Monthly Payment ≈ $486.71 Monthly car loan payment under the $1000 cash back offer and 4.29% APR pre-approved financing:
P = $22,000 - $1,000 (cash back)
r = 0.0429 / 12
n = 4 Monthly Payment = (($22,000 - $1,000) * (0.0429 / 12)) / (1 - (1 + (0.0429 / 12))^(-48))
Monthly Payment ≈ $478.92 APR at which Prof. Business would be indifferent between the two offers:
To find the APR, we need to equate the monthly payments of both offers and solve for the APR.
Using the monthly payment formula: For the 2.9% APR financing offer:
$486.71 = ($22,000 * (APR / 12)) / (1 - (1 + (APR / 12))^(-48)) For the $1000 cash back offer and 4.29% APR financing:
$478.92 = (($22,000 - $1,000) * (APR / 12)) / (1 - (1 + (APR / 12))^(-48)) By trial and error or using financial software, the APR that equates the two monthly payments is approximately 4.3232%. Amortization schedule for the $22,000 loan with the $1000 cash back offer and 4.29% APR pre-approved financing:
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for business and personal finance: What is insurance?
Answer:
Insurance is the procedure by which persons or companies exposed to a specific risk agree with an institution specializing in compensation for damage that the institution will indemnify the damage caused when the risk materializes. The resulting contract is called insurance.
From a commercial point of view, insurance can be defined as the means by which the cost of incidental damage can be converted evenly into a continuous annual cost on an annual basis.
Required-: JOURNAL ENTRY
Paid Rs. 28,000 to Sansee stores in fullsettlement of Rs. 30,000 by cheque
please help Me with this.
I'm still confused in it.
Explanation:
Given:
Paid 28,000 in full settlement
Explanation:
Books of (......LTD)
Journal entries
Particular Debit Credit
Sansee stores A/C DR. 30,000
To Discount A/C CR 2,000
To Bank A/C CR 28,000
Based on what we discussed about interest rates, which of the following will likely charge the highest interest rate on a loan?
Credit Union
Payday Lender
Bank
Charity
The highest interest rate on a loan will likely charge the Credit Union, it is the financial institution. Option A is correct.
What is a Credit Union?A credit union is a member-owned nonprofit financial cooperative that functions similarly to a commercial bank.
Credit unions offer similar services to merchandising banks to their members, such as deposit accounts, credit, and some other financial services.
The Credit Union will most probable be shooting down the highest interest rate on a loan.
Therefore, option A is correct.
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many companies issue shares with differential voting rights, deviating from the one-share one-vote principle
Many companies do issue shares with differential voting rights, deviating from the one-share one-vote principle.
In traditional corporate governance, the one-share one-vote principle implies that each share of a company's stock entitles the shareholder to one vote in corporate matters, such as electing the board of directors or approving major decisions. However, in some cases, companies may issue shares with different classes or types that carry varying voting rights.
Shares with differential voting rights can give certain shareholders, often founders, executives, or early investors, enhanced voting power compared to other shareholders. These shares may carry multiple votes per share or even have exclusive voting rights on specific matters. The intention behind such structures is to allow certain stakeholders to retain greater control over the company's decision-making, even if their economic ownership or stake is relatively smaller.
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Suppose the market price of chicken wings in a university town recently increased. Economics students studying at the university are discussing potential causes of the price increase. One group of students theorize that the price increased because several wing joints in the area have recently gone out of business. Others claim the increase in the price of chicken wings is because of a recent decrease in the price of beer.
Everyone agrees that the decrease in the price of beer was caused by a recent decrease in the price of hops, which are not generally used in making chicken wings.
The first group of students claim the increase in the price of chicken wings can be attributed to the fact that several wing joints in the area have recently gone out of business.
This may explain the price increase, as the decreased competition in the economics market could lead to an increase in price.
What is economics market?Economics market is an environment where buyers and sellers interact in order to exchange goods and services for money. It is the basis for the study of economics, which is the study of the production, distribution, and consumption of goods and services. Markets can be divided into different types depending on the nature of the product or service being exchanged. The two primary types of markets are the perfect competition market and the imperfect competition market. Perfect competition markets are those in which all buyers and sellers are equal and have access to the same information.
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Les Stoker, a broker who practices nonexclusive single agency, has a client who is determined to buy one of Stoker's in-house listings. Stoker explained the situation to the client, who agreed to go ahead with the transaction as an unrepresented customer. At lunch, the buyer talked with Stoker about the challenges his family business was having and his wife's upcoming legal case. This information indicated to Stoker that the customer was in a weaker negotiating position than he thought. Because Stoker obtained this information after terminating the agency with the buyer, can he share it with the seller
Answer: No.
Explanation:
Even though Stoker obtained this information after terminating the agency with the buyer, he cannot share it with the seller as in this case, it seems that the full effect of the changed relationship isn't understood by the buyer-customer.
It's essential for the broker to make sure that certain the former client understands the meaning of the situation at hand.
why make an app an then only allow two questions
Answer:i dont know
Explanation:
Which best describes why countries establish limits on international trade? choose three answers. to force domestic industries to sell higher quality goods to restrict foreign influence in a sector to restrict importation of a foreign good to lower the price of foreign goods to punish other countries
Answer:
B C E
Explanation:
Answer:
B, C, and E <3
Explanation:
The adjusting entry to record the estimated amount of bad credit sales is a debit to bad debt expense and a credit to.
Answer: A debit to Answer: Bad Debt Expense and a credit to Allowance for Doubtful Accounts would generally be included in the adjusting entry to reflect the expected bad debts in the period credit sales occur.
The adjusting entry would typically include a charge for bad debt expenses as well as a credit to the allowance for doubtful accounts to represent the anticipated bad debts during the time when credit sales take place.
What is Sales?A sale is an agreement between a buyer and a seller in which the seller exchanges money for the sale of tangible or intangible products, assets, or services. There are two or more parties involved in a sale. A sale, or a contract between two or more parties, such as the buyer and seller, can be thought of in larger terms.
The debit to Bad Debt Expense and the credit to Allowance for Doubtful Accounts would typically be included in the adjusting entry to reflect the expected bad debts at the time credit sales occur.
By debiting the accounts receivable account and crediting the bad debt expense account, respectively, For instance, if customer Lucy has a $125 invoice that is 91 days overdue, your bad debt expense journal entry would seem as follows: $125 is debited for bad debt expenses. The credit for Receivables is $125.
Therefore, The provision for dubious accounts, which, throughout the period of credit sales, represents the anticipated bad debts.
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When should a firm consider expanding from strictly domestic trade to international trade? When should it consider becoming further involved in international trade? What factors might affect the firms desicions in each case?
Answer: When they begin to get trades beyond how their previous annual turn over and international requests
Explanation:
Many businesses start from homes due to they can't afford to pay or rent a property yet while run their business. Businesses have different methods of operation, while some operate strickly domestically, others might want to either sell domestically too or do same alongside internationally.
A company can begin expanding or considering international trade on it's sales when they begin to receive large recommendation and request internationally.
The factors that might affect most cases always be fear and cost related. Fear of being kicked out of the market by competitors and cost in the sense of competitors beating his prices to give them a challenge.
Any firm should start consider expanding from domestic trade to international trade when its has already saturated the domestic market and needed to expand outside of the country for further growth opportunities.
Normally, a company can begin expanding its scale on international trade when they begin to receive large recommendation and request internationally.
Also, some of the factors that might affect them includes operation cost, trade barrier, competitors etc, in the international market etc
However, a firm should start consider expanding from domestic trade to international trade when its has already saturated the domestic market and needed to expand outside of the country for further growth opportunities.
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Witch of the following is a current asset?
A- Employee
B- Land
C- Supplies
D- Mortage
an f 0 value of 7 min provides an acceptable economic spoilage for a given product. determine the process time at 115 8 c.
It is not possible to determine the process time at 115.8°C based solely on the given information.
The F-value, or sterilization value, is a measure of the lethality of a heat process and represents the time at a specific temperature required to achieve a certain level of microbial destruction. It is typically calculated using a logarithmic model that takes into account both time and temperature.
To determine the process time at 115.8°C, we would need to know the specific microorganism of concern and its associated z-value (the temperature change required to achieve a tenfold change in the D-value). With this information, we could use the F-value equation to calculate the required process time.
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he Kentucky state legislature is considering an increase in the state gasoline tax. Representative Campbell argues that an increase in the gasoline tax would harm low-income drivers disproportionately, Representative Richards responds by saying that low-income drivers own smaller cars that use less gasoline, and that low-income drivers therefore would not be harmed disproportionately Representative Campbell's argument is based primarily on efficiency, while Representative Richards argument is based primarily on equality. Both representatives' arguments are based primarily on efficiency Both representatives' arguments are based primarily on equality Representative Campbell's argument is based primarily on equality, while Representative Richards' argument is based primarily on efficiency
Representative Campbell says that a rise in the gas tax would disproportionately hurt drivers with modest incomes.
What is the definition of income?Income is the money and value that a person or corporate body receives in return for giving a good or service, investing capital, or both.
What does income in a job mean?a sum of money given to you by a boss. This covers tips, bonuses, overtime pay, and many forms of compensation. That money is considered income from employment if you get a W-2 tax form. Include the gross amount (amount before taxes or any deductions) on the application.
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Companies generally design pension plans that are
O noncontributory.
O qualified.
O insured.
O contributory.
Option (d), Contributory pension schemes are typically created by businesses.
What year did the contributing pension plan start?A new pension plan referred to as the National Pension System (NPS) was established for Central Government employees; Notifications No. 5/7/2003-ECB & PR from of the Ministry of Finance's Department of Economic Affairs, dec. 22, 2003.
an arrangement for pension benefits in which both the employer and the employee make financial contributions: A contributing pension plan, a subsidised canteen, and free life insurance are examples of favorable working circumstances.
What is the contributory pension program's mission?Making sure that everyone who has served in Nigeria's public or private sectors, including independent contractors, receives their retirement benefits as they are due is the main objective of the CPS.
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in order for a contingent liability to be recorded as a journal entry in the financial statements, it must be (probable/reasonably possible/remote)
A Contingent liability must be probable and reasonably estimable in order to be recorded as a journal entry in the financial statements.
A company's future debt or obligation is referred to as a contingent loss when it is dependent on a future event.
A responsibility that arises based on the outcome of a specific event and provides coverage for losses to a third party for which the insured is vicariously liable is referred to as contingent liability or indirect liability.
When it is probable that the future event will take place and the amount of the liability can be reasonably estimated, contingent liabilities must be recorded in the accounts, according to the rules.
This indicates that a liability would be established and a loss would be recorded prior to the settlement.
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